The accounting profession couldn’t exist without data analytics. But oftentimes, CPA firms are so focused on tracking and analyzing data for their clients that they’re less focused on using it to improve the firm’s internal operations.
Using detailed micro-information captured by workforce management software can ease the burden of generating client reports, allocating resources efficiently, and measuring employee/team performance. It can also help set informed operational strategies for your firm.
This blog will help you understand the benefits of workforce management software for accountants and illustrate how data collected through these systems can improve firm operations.
Benefits of Workforce Management Software for Accountants
Workforce management software provides a holistic approach to managing teams and client engagements within CPA firms. It ensures the right people are working on the proper client engagements at the correct times and monitoring resource commitments, enabling accounting firms to increase productivity, accountability, and operational efficiency.
Workforce management systems track company data in real-time by updating project/program/task progress against pre-set measurements, monitoring resource allocation, and separating billable and non-billable hours.
Benefits of using the micro-information produced by workforce management software include:
- Reduced accounting errors
- Improved outcomes
- Informed profitability reporting
- Enhanced accounts receivable turnover ratio
- Maximized project efficiency
- Quicker client billing
How Can Data From Workforce Management Software Improve Internal Processes for CPA Firms?
The multitude of business data captured by workforce management solutions is invaluable to CPA firms of all sizes. Here are a few beneficial ways this data can be put into action.
Setting Key Performance Indicators (KPIs)
Data related to project outcomes can help CPA firms set realistic KPIs and measure progress towards them. Workforce management software collects and analyzes relevant data to identify strengths, weaknesses, and untapped opportunity gaps. This can help firm leaders better optimize their business for sustainable and scalable success.
Boosting Reporting
Workforce management tools have built-in program and project management reporting that allows you to track milestones, deliverables, profitability, and more for all your engagements. This data can help keep teams on track and adjust staffing needs.
Supporting Decision-Making
Having historical data is crucial for uncovering inefficiencies and making better business decisions. Many businesses rely on gut feelings to make choices even when data is available.
Predictive business analytics can help you forecast profitability and resource needs for new projects so you can staff them accordingly. It takes some guesswork out of the most efficient operating methods and supports your reasoning for implementing firm improvements.
Analyzing Financial Health
In addition to their client work, CPA firms must monitor their financial health to optimize their business. Collecting micro-information through workforce management systems can help inform cost management, budgeting optimization, and the profitability forecast for each project/program using built-in calculators (eg, cost per hour, capacity modeling, workforce utilization).
Measuring Performance
Modern technologies are critical for understanding and tracking productivity and focus levels across teams, especially for firms using blended remote, hybrid, and onsite models. This can help you determine which working model is best for your firm.
There are also tools available to quantify the work-life balance of each employee, which can help you identify employees who are at risk of burnout before it’s too late.
Automating Manual Processes
Eliminating manual billing and accounts receivable processes can save time, reduce human error, decrease billing cycle time, help reduce write-offs and write-downs, and ensure every team member/team is productive. Workforce management systems can pre-populate a bill for review using billable task and time tracking attributes, speeding up the time to bill and payment.
Avoiding Legal Trouble
CPA firms ensure that all time porker is time paid accordingly to applicable Federal, State, and local laws to help avoid wage and hour lawsuits. Workforce management tools can prevent costly lawsuits by customizing timesheets to each employee’s timezone and applicable regulations. They also document employee time and (where appropriate) rest and meal periods, overtime, and double time records in case of a future claim or audit.
Experience the Benefits of Data-Driven Strategies With the Right Software
Having access to additional data about your workforce and daily processes can only help your firm. Workforce management solutions enhance your decision-making capabilities, leading to cost savings, increased revenue, and business growth.
coAmplifi’s workforce management software was designed with accountants in mind. Stay ahead of the curve – schedule your demo now!
